Summertime moves make sense for many families, as they can ensure the kids
are well established to start in their new schools by fall. The moving
process can be hectic, but it also creates lucrative tax deductions – so
keep your receipts and documentation to take advantage. As excerpted from
my new book,
Essential Tax Facts: How to Make the Right Moves and Be
Audit-Proof, Too, here are seven moving-related tax tips for expense claims that every
Canadian needs to know!

Moving Tax Tip #1

If the move is required by your employer and you sell your home at a loss,
it is possible to receive a tax-free reimbursement of those losses, in
amounts up to $15,000, should your employer choose to assist you. After
this, one half of the reimbursement over $15,000 is tax-free.

Moving Tax Tip #2

If you have to move and leave a vacant residence behind while you try to
sell it, you may claim up to a maximum of $5,000 in moving expenses on your
tax return for the costs incurred in the meantime. This includes mortgage
interest, property taxes, insurance, and utilities.

Moving Tax Tip # 3

In order to qualify to claim moving expenses, you must move at least 40
kilometres closer to the location where you’ll earn income from employment
or self-employment.

Moving Tax Tip #4

If you’re a student, you may be eligible to claim moving expenses if you’ll
be attending a post-secondary program at a university, college, or other
educational institution full-time. But you must be earning income after the
move to qualify.

Moving Tax Tip #5

If you have to stop working or operating a business where you currently
reside, and have to establish a new home where you’ll live with your
family, you may be eligible to claim moving expenses. Investment income and
employment insurance benefits received after the move are not considered
qualifying income for the purpose of claiming moving expenses.

Moving TaxTip # 6

When the scenarios above apply, the cost of selling the former residence
–including real estate commissions, penalties for paying off a mortgage,
legal fees, and advertising costs – are deductible. So are the expenses
relating to the purchase of the new home (as long as the old home was
owned), including transfer taxes and legal fees, and temporary living
expenses (meals and lodging) for up to 15 days.

Moving Tax Tip #7

If your move meets the criteria above, transportation expenses and costs of
meals en route can be claimed (100%, no 50% restriction), as well
as removal and storage costs, including: insurance for household effects;
costs of moving a boat, trailer, or mobile home (to the extent the costs of
moving the mobile do not exceed the costs of moving the contents alone).

The foregoing is for general information purposes only and is the opinion
of the writer. No guarantee of investment performance is made or implied.
It is not intended to provide specific personalized advice including,
without limitation, investment, financial, legal, accounting or tax advice.